Sterling Enterprises wishes to earn an after-tax net income of $22,000. Total fixed costs are $96,000, and the contribution margin per unit is $7.50. Sterling's tax rate is 35%. What is the number of units that must be sold to earn the targeted net income?

Sterling Enterprises wishes to earn an after-tax net income of $22,000. Total fixed costs are $96,000, and the contribution margin per unit is $7.50. Sterling's tax rate is 35%. What is the number of units that must be sold to earn the targeted net income?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 13E

See similar textbooks

Related questions

Q: Need Answer

A: Explanation of Total Job Cost:Total job cost refers to the combined expenses incurred to complete a…

Q: What is total liabilities?

A: Debt-Equity Ratio = Total Debt/Total Equity65% = 250,000/Total EquityTotal Equity = 250,000/65%Total…

Q: Find true options

A: Step 1: Understanding the Cash Collected FormulaThe cash collected from customers is determined…

Q: I need help with accounting

A: Given Data:Earnings before Interest and Taxes (EBIT) = $75,000Net Income = $40,000Interest Expense =…

Q: Give me answer

A: Explanation of Current Liabilities:Current liabilities are short-term financial obligations that a…

Q: Provide correct answer general Accounting question

A: Step 1: Define Total Stock ReturnThe stock investment provides returns in the form of dividends and…

Q: During its first year. Concord, Inc., showed a $33 per unit profit under absorption costing but…

A: Given Data:Profit under absorption costing = $33 per unitProfit difference (Absorption - Variable…

Q: How much is Tristan 's amount realised ?

A: To calculate the amount realized from the sale of the stock, you need to subtract the broker's…

Q: Provide answer general accounting

A: Step 1: Definition of Accrual Basis AccountingThe accrual basis of accounting requires expenses to…

Q: What was the average collection period in days on these general accounting question?

A: Step 1: Calculation of average accounts receivablesStep 2: Calculation of average collection period

Q: Provide solution this question general accounting

A: Under variable costing, only variable costs are included in the valuation of inventory. Fixed costs…

Q: Need answer

A: Explanation of Equivalent Units of Production (EUP):Equivalent units of production (EUP) refer to…

Q: Kindly help me with this question general Accounting

A: Step 1: Define Dividend Payout RatioThe total profit (in percentage terms) distributed as a dividend…

Q: Liabilities for the period?General accounting

A: Step 1: Define LiabilityLiability is the total amount a company owes to others. The liabilities of a…

Q: None

A: To determine the amount of overhead Lowden Company should record, we use the given overhead…

Q: Need help with this financial accounting question

A: Step 1: Define Stockholders' EquityStockholders' equity represents the owners' claim on a company's…

Q: What is the price earning ratio? General accounting

A: Given Information:Sales = $823,000Profit Margin = 4.2% (which is 0.042 in decimal form)Shares…

Q: What is the expected return on the stock on these financial accounting question please give me true…

A: The question requires the determination of the expected return on stock. The expected return…

Q: general accounting

A: Detailed explanation:Given: Net credit sales $ 982,000Accounts Receivable 2018 $ 80,000Accounts…

Q: Need answer general Accounting question

A: Step 1: Define Net Income and Net LossNet income (or net loss) represents a company's financial…

Q: A fixture company manufactures products brass products in a small manufacturing facility that has 40…

A: Step 1: Understanding Direct Materials Cost VarianceThe Total Direct Materials Cost Variance…

Q: Upon completing an aging analysis of accounts receivable, the accountant for Richmond Industries…

A: To calculate the bad debt expense, we need to adjust the allowance for doubtful accounts to match…

Q: At the end of Everest Manufacturing Ltd's first year of operations... Please answer the general…

A: Absorption costing includes both variable and fixed manufacturing costs in the cost of inventory,…

Q: The ending inventory for the year would be valued at?

A: Explanation of Full Costing (Absorption Costing):Full costing, also known as absorption costing, is…

Q: Need answer

A: Since depreciation is a non-cash expense, we add it back to net income: 1. Net Cash Flow=Net Income+…

Q: CFT corporation uses the cash basis of accounting?

A: Explanation of Cash Basis Accounting: Cash basis accounting is a method where revenue is recorded…

Q: need help this question

A: Step 1: Capital gains Capital gains = Selling price - Original priceCapital gains = $180,000 -…

Q: The cost of goods sold by york enterprise?

A: Explanation of Beginning Inventory: Beginning inventory represents the value of merchandise or goods…

Q: What is this firm debt equity ratio?

A: Let's calculate Zombie Corp.'s debt-equity ratio.1. Understand the RelationshipWe can use the DuPont…

Q: 5 PTS

A: To calculate the average total assets, use the formula:Average Total Assets= {(Beginning Total…

Q: Hi expert please help me

A: Step 1: Calculation of book value of machineBook value = Original cost - Accumulated…

Q: The lockbox system

A: Step1: Calculate the reduction in accounts receivable:Reduction in A/R = Average A/R * Percentage…

Q: Financial Accounting

A: Step 1: Define Times Interest Earned (TIE) RatioThe Times Interest Earned (TIE) Ratio is a financial…

Q: general accounting question

A: Step 1: Definition of Capital Gain When a capital asset is sold by its owner at its market value…

Q: The cost based using the absorption costing approach is

A: Explanation of Absorption-Cost Approach:The absorption-cost approach includes all manufacturing…

Q: Calculate the labor variance?

A: Labor rate variance = (Standard rate - Actual rate) x Actual hours workedLabor rate variance = (9 -…

Q: Calculate the total fixed cost?

A: To calculate the total fixed cost, we can use the formula for operating income: Operating Income =…

Q: Opereting cash flow? General accounting

A: To estimate the Year 1 operating cash flow, you can use the following formula:Operating Cash Flow =…

Q: Hello teacher please help me this question solution

A: Step 1: Definition of Asset Turnover RatioThe asset turnover ratio measures how efficiently a…

Q: None

A: Let's calculate the Year 1 operating cash flow step-by-step:1. Calculate Earnings Before Interest…

Q: ??!!

A: Given:Total assets = $9,200,000Total assets turnover = 2.10Return on assets = 10.5% or 0.105…

Q: Can you please solve this general accounting question?

A: To determine Grafton Ltd.'s total product cost for March, we need to calculate the sum of prime cost…

Q: How much gross profit will be necessary for 2016 to maintain this ratio?

A: Step 1: Definition of Gross ProfitGross profit represents the company's earnings after deducting the…

Q: ?? Financial accounting question

A: Step 1: Define Cash Received from CustomersCash received from customers refers to the actual cash…

Q: Want to this question answer general Accounting

A: Calculation of WACC (Weighted Average Cost of Capital)The Weighted Average Cost of Capital (WACC)…

Q: I need help with accounting question is correct answer

A: Step 1: Debt-to-Equity RatioThe debt-to-equity ratio allows the users of financial statements to…

Q: provide correct solution in this general account query

A: Step 1: Identify the Given InformationItemAmount ($)Beginning Capital (Jan 1)303,110Additional…

Q: What was the change in wages pay le for the period?

A: To calculate the change in wages payable, we can use the following formula:Change in Wages…

Q: Don't use aii solve this question financial accounting

A: Step 1: Formulas Dividend Yield = Dividend per share/Market value per sharePrice Earnings ratio =…

Q: Provide answer general accounting question

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) refers to the direct costs…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
A company has total fixed costs of $200,000. Its product sells for $25 per unit and variable costs amount to $15 per unit. The company wishes to earn an after-tax income of $35,000. Assume that the company has a 30% tax rate. a. How many units must be sold to achieve this after-tax income level? b. What level of pre-tax income must the firm earn to achieve the desired result described above? Can you show your workings please
The following annual information is for Dexter Corporation: Product A Revenue per unit: $20.00 Variable cost per unit: $15.00 Total fixed costs: $100,000 How many units does the company have to sell to achieve an after tax income of $75,000 if the income tax rate is 25%?
Zachia Ltd provides the following data regarding its four product lines: Product Sales mix Weighted average contribution margin per unit (WACMU) Fixed costs Desired profit after tax w Y 60 20 15 $13.7 $71,000 $33,950 The corporate tax rate is 30% Required Calculate the number of units of Product X that must be sold in order to achieve the desired after-tax profit?
Raven Company has a target of $70,100 pre-tax income. The contribution margin ratio is 32%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $36,200?
The following annual information is for Bressler Corporation: Product X Revenue per unit: $10.00 Variable cost per unit: $5.00 Total fixed costs: $100,000 How many units the company has to sell to achieve an after tax income of $75,000 if the income tax rate is 25%?
Jack's Jax has total fixed costs of $25,000. If the company's contribution margin is 60%, the income tax rate is 25% and the selling price of a box of Jax is $20, how many boxes of Jax would the company need to sell to produce a net income of $15,000? OA. 5,625 B. 4,445 C. 3,750 D. 3,333
Need help
1. Blake Company has a 25% margin of safety ratio. Its after-tax-return on sales is 6%, and its tax rate is 40%. Required: a. Determine the company's contribution margin percentage. b. Assuming the current sales are P120,000, determine the total fixed costs.
Newell company wishes to earn a pre tax income please solve this question
If selling price per unit is $30, variable costs per unit are $20, total fixed costs are $10,000, the tax rate is 30%, and the company sells 5,000 units, calculate the net income.
Penny Corporation desires to earn target net income of $15,000. If the selling price per unit is $51, unit variable cost is $31, and total fixed costs are $685,000, the number of units that the company must sell to earn its target net income is